(a) whether the policy of Limited Liability Partnership (LLP) has been introduced in
the country;
(b) if so, the salient features of the policy; and
(c) the likely economic benefit to the professionals/non-professionals under the policy?
(a) whether the policy of Limited Liability Partnership (LLP) has been introduced in
the country;
(b) if so, the salient features of the policy; and
(c) the likely economic benefit to the professionals/non-professionals under the policy?
MINISTER OF CORPORATE AFFAIRS (SHRI PREM CHAND GUPTA)
(a) & (b): It is proposed to enable Limited Liability Partnerships (LLPs) to be formed and
regulated in the country on the basis of legislation. The Government has introduced a Bill,
namely, the Limited Liability Partnership (LLP) Bill, 2006 in the Rajya Sabha on 15th
December, 2006. The Bill is under the consideration of Parliamentary Standing Committee
on Finance.
(c): The Limited Liability Partnership (LLP) is viewed as an alternative corporate business
vehicle that would provide the benefits of limited liability but allows its members the
flexibility of organizing their internal structure as a partnership based on a mutually
arrived agreement. Once the proposed legislation is enacted, this form would enable
entrepreneurs, professionals and enterprises providing services of any kind or engaged in
scientific and technical disciplines, to form commercially efficient vehicles suited to
their requirements. Owing to flexibility in its structure and operation, the LLP would
also be a suitable vehicle for small enterprises and for investment by venture capital.